Does Workplace Culture have a Connection with ROI?
As a business owner, you're investing in your employees, your culture, and your company's future to help your bottom line. Too many small businesses avoid investing in culture because they don't understand the connection between culture and ROI. Unfortunately, they're missing out on potentially massive returns.
What Elements of Workplace Culture Positively Affect ROI?
There is a direct correlation between employee happiness, culture, and your company's ROI. However, what makes this hard for some to see is that culture doesn't have clear metrics, so how do you know your ROI? This is why it's important to focus on the following elements of your company culture. When you do, you'll see your ROI increase.
Vision, Mission, and Purpose
What is your company culture like? How to describe the culture of a company is tough because culture doesn't have a single definition. What culture means to your company may be different from another, and that's perfectly fine. What does seem to translate between organizations is their values. Some good company culture examples are integrity, honesty, cooperation, safety, and adaptability. These descriptive words emphasize everything you do, and they can directly impact your ROI.
Operations and Procedures
This may sound like dull HR stuff, but operations and procedures are how your company gets things done. Don't reinvent the wheel every time you or one of your employees needs to do something. Figure out the best way to do it, write it down, and then everyone else who needs to do that same action can simply follow the steps instead of wasting time figuring it out.
This goes for many parts of your business:
- Customer Service
- Team Communication
Communication is crucial to getting the job done for every business, but you also must have clear communication between management and staff. Without that, staff may not be sure of their role or fit into the overall company structure.
How your company shares information and how you communicate internally and externally all play a pivotal role in your ability to grow and generate revenue. You can ensure a positive company culture and a similarly positive ROI with respectful and professional communication.
Leadership and Management
Along with communication, your leadership team should set the tone for how people communicate with one another. If your managers yell and scream, employees will be demoralized. They will also treat each other with the same low level of respect. Consider your leadership team to be role models for the company. How they act and communicate will directly impact your company culture, either positive or negative.
Recognition of Employees
Employees want fair and competitive wages. But this isn't the only way to recognize your employees, and if it is the only thing you do, you're not going to have a positive company culture and resulting positive ROI.
More than just money, employees want significant benefits and feedback. They want to know that their hard work and effort have made a difference in the company and have helped achieve a common goal. Don't just talk to employees when things are going poorly. Make a concerted effort to recognize and acknowledge their positive impacts. Not only does this improve culture but you’ll reap the benefits of efficiency in the workplace!
Professional and Personal Learning and Development
Training doesn't stop after you've onboarded a new hire. Training and development are crucial to having efficient staff and the ongoing success of your small business. Employees need to stay up-to-date on business areas that affect their job.
They also have a desire to improve their performance. Employees aren't robots who just learn one skill and never grow. Employees are people who want to learn more, who want to develop, and who may even want to gain a promotion and move up within your organization. Give them the support and resources they need to achieve their goals, ultimately benefiting your company. Many employees exit a learning and development program with new skills that can add to innovative practices within your company, making for more efficiency and increased profits.
Today, you hear about toxic workplace culture and how employees frequently call in sick just because they don't want to work in a bad atmosphere. Many workers are getting sick because the environment is so bad. This negativity directly impacts your company's growth and success.
Energy and mindset are crucial to your company culture, and negativity impacts employees, reducing your ROI. You can show your employees you care by fixing the problem, which alone can begin to turn things around and increase the positive energy and workplace environment.
Partner with PRO Resources to Get the Best ROI
You can try to do these things on your own. Or you can partner with experts. At PRO Resources, we focus on your business so you can focus on growth. Contact us today to learn more about how we can help you achieve your goals.